from Swift shows that in July RMB bounced back to its position as the fifth
most active currency for global by payments by value, with a share of 1.90%, a
slight increase from 1.72% in June 2016.
the data shows that ...
Visa is partnership with Chain to launch a new business-to-business (B2B) payments platform using blockchain technology.
The new platform, Visa B2B Connect, will be built using Chain Core, an enterprise blockchain infrastructure that is designed to facilitate financial transactions on scalable, private blockchain networks.
The plan is for Visa to use this technology to develop a near real-time transaction system designed for the exchange of high-value international payments between participating banks on behalf of their corporate clients.
The platform will be managed by Visa end-to-end and the firm says it will facilitate a consistent process to manage settlement through Visa’s standard practices.
Earthport, which provides a payment network for cross-border payments, says that it is expanding service with Bank of America Merrill Lynch (BAML).
The firm says that the service will add numerous new countries and currencies to the bank’s online and file based banking portal, CashPro, further expanding the bank’s international Automated Clearing House (ACH) payment capabilities.
As a result of this deal, BAML clients will be able to access cross currency payments in more than 60 countries and nearly 25 currencies, expanding upon the relationship between Earthport and BAML that was first announced in 2013.
London remains the dominant offshore centre for RMB FX trading and payments according to the latest RMB Tracker from Swift.
The Swift report focuses on the City of London as an offshore RMB hub and includes statistics and analysis for the first three months of the year as well as insights about the RMB and the state of play in London’s FX market.
As of March 2017, Swift’s data shows that 36.3% of the RMB FX transactions (excluding China) are conducted with the UK.
Celent has released a report today that documents the progress being made in the internationalisation of the renminbi (RMB), and outlines the opportunities that this represents for market participants, as well as the challenges it presents.
Discussing how investment managers can benefit from RMB internationalisation, the report says that they should consider adopting new strategies to respond to greater short-term volatility in the currency.
It notes that investment managers have traditionally looked to gain from China’s one-way currency appreciation and hold bonds till maturity.
“But Chinese regulators’ abandonment of circuit breakers and other protective measures means traditional expectations of regulatory intervention may not hold going forward, opening up more opportunities for short-term price fluctuations,” says the report.
INTL FCStone has announced that the Global Payments Division (GPD) of its London-based subsidiary has introduced Automated Clearing House (ACH) connectivity, enhancing the company’s high-volume, low-value cross-border payments offering.
Low-value payments are the single largest driver of growth in GPD’s payments volumes, which are currently 60% up year-on-year, the firm says. In order to support this increasing demand, the firm launched an initiative to securely access a greater number of global ACH low-value clearing systems.
“In the past, how a payment was sent and what the cost of sending it was didn’t matter as much because the absolute value of that payment was usually relatively high. But today, as payments become smaller and smaller, it becomes more and more important to build networks that are cost effective,” Carsten Hils, the global head of GPD, tells Profit & Loss.
INTL FCStone’s Global Payments Division, a London-based subsidiary will now offer indicative foreign exchange rates, viewable in real-time for more than 140 currencies through its proprietary global payments network.
These indicative rates will be offered via the Global Payments Division’s Rate Feed product. The Rate Feed is designed to enable customers to instantaneously establish an accurate indication of the cost of a cross-border transaction, valuing the transaction or foreign currency holding in various currencies in real-time.
Although it remains a separate product, the Rate Feed is integrated into FXecute – INTL FCStone’s global payments platform – meaning that anyone using the latter can use information from the Rate Feed to inform transactions being executed on the platform.
Bank of America Merrill Lynch (BAML) has announced that it has expanded its payments capabilities with the launch of a new multicurrency netting solution.
The bank says the new solution centralises inter-company payments, enabling large companies that operate across multiple borders to reduce both the number of payments and the total value of payments made between companies that regularly invoice one another.
Large corporations typically make hundreds of inter-company payments worth millions of dollars every month, the bank further adds.
NEX Optimisation, NEX Group’s post-trade services unit, has announced that Baton Systems, a high-speed payments infrastructure provider, has joined NEX Infinity as the first third party to provide its services through the platform.
The two businesses say they have been working in partnership alongside an existing but un-named large, multinational bank client of Nex to deliver a new post-trade solution for FX spot transactions delivered through the Infinity platform. The solution combines Nex Optimisation’s existing matching and confirmation services with Baton’s settlement and payments services.
Banks aren’t actively engaging corporates about blockchain solutions, even though these could be beneficial to their businesses, according to speakers at the Swell event hosted by Ripple in Toronto this week.
“[The banks] are all eager to work on blockchain, but what typically gets caught up is that they’re waiting for the use case and the ROI to be defined before they act, and what ends up happening is that they become fast followers, not leaders, and unfortunately in the problems that we’re trying to solve they can’t be followers, they have to lead,” explained Kapil Mokhat, global director payments programs and partnerships at Airbnb.
Similarly, Paul Snaith, manager of treasury operations for capital markets and banking and payments at the World Bank, noted that banks haven’t been knocking down his door to talk about how blockchain technology can be utilised for his business.
R3 and 22 of its member banks have developed a new international payments solution that leverages distributed ledger technology (DLT).
A protoype of the solution – which is being built on R3’s Corda platform – is due to be released by the end of 2017.
In a release issued today, R3 notes that domestic payment systems have advanced in many countries to the point of providing real-time funds transfer for customers, highlighting by contrast the extremely inefficient, expensive and slow experience businesses encounter with international payments.
Mobile payments and cryptocurrency startup, Circle, has acquired the crypto-asset exchange Poloniex.
Circle is backed by $140 million in venture capital from investors including Goldman Sachs, IDG Capital Partners, Breyer Capital, Accel Partners, General Catalyst Partners, Baidu, CICC Alpha, EverBright, WangXiang and CreditEase.
Circle has two main business lines. According to the company, “Circle Pay helps people around the globe connect to one another and share value just as they would share any other kind of content on the open borderless Internet; Circle Trade serves institutions and investors as one of the world’s largest providers of crypto asset liquidity.”
Circle says that it is also planning to launch an app that will enable individuals to tap into crypto-asset investment “through a simple, seamless, mobile experience”.
The Global Payments Division of INTL FCStone’s London based subsidiary, IFL, has introduced FXePrice, a proprietary Web-based platform allowing IFL local currency liquidity providers to streamline executable prices to 140 currencies and 175 countries, according to the firm.
The company says it has released the platform to select members of its global network of more than 300 correspondent banks, to obtain feedback and incorporate recommendations. A full roll out to its entire network of counterparties is planned for later in 2018.